Philadelphia Water Department Files Formal Notice of 2022 Rate Proceedings

PHILADELPHIA — On February 25, 2022, the Philadelphia Water Department (Department or PWD) filed the Formal Notice of its Special Rate Proceeding with the Philadelphia Water, Sewer and Storm Water Rate Board (Rate Board or Board) for reconciliation of approved FY 2023 rates and charges.

The above rates and charges were previously authorized as a part of the Settlement of the 2021 general rate case (Settlement) which was approved by the Board in its June 16, 2021 Rate Determination.

As a part of the Settlement, PWD agreed that it would initiate a Special Rate Proceeding to evaluate whether two potential adjustments to approved FY 2023 rates were warranted. Such adjustments could potentially reduce approved rates under certain defined circumstances based upon (i) federal stimulus funding actually received by PWD; and/or (ii) FY 2021 financial performance (all as set forth in the Settlement terms and conditions). PWD maintains that no adjustment to approved FY 2023 rates is warranted in this proceeding.

On February 25, 2022, the Department also filed the Formal Notice of proposed changes to its Tiered Assistance Program (TAP) Rate Rider Surcharge rates, which are to become effective September 1, 2022.

If the Department’s position prevails in both proceedings, rates to be implemented on September 1, 2022 will have the following estimated impact on typical residential customer monthly bills.

Effective Date	Percentage Increase	Additional Monthly Charges	Typical Monthly Bill
September 1, 2022	7.4%	$5.14	$74.29

Note: A typical residential customer has a 5/8-inch water meter and uses approximately 500 cubic feet of water (3,740 gallons) per month.

Prior to rendering its decisions in the above proceedings, the Rate Board will review the Department’s request and schedule public input hearings and technical hearings to determine whether the proposed new rates are just and reasonable. This rate process will take place over the coming months.

Opportunities for the public to provide comments on the proposed changes in rates and charges or to otherwise participate in the rate process will be announced shortly.

Customers can learn about participating in the rate process at www.phila.gov/water/rateboard.

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